Since the Ibovespa (IBOV) touched its historical maximum at 130 thousand pointsthe main index of Brazilian stock exchange lost another 25% of its value, currently struggling to regain 100k points. And many actions with good foundations were extremely cheap.
THE Activate Investments surveyed the ten companies that are worth investing in even in times of volatility, with recommendations that can yield gains of up to 175%given the high discount of assets.
See below the 10 companies that are good and cheapwhose shares must be bought by the investor at the sound of cannons and sold at the sound of trumpets.
Magazine Luiza (MGLU3)
In the short term, the Magazine Luiza (MGLU3) must still face the impact of high interest rates and increased competition in Brazilian retail. In the long shot, analysts expect the resumption of purchasing power of Brazilians and a more rational growth of retailers
“Magazine Luiza is very discounted by the current high interest rate scenario and there is a great distortion in the current screen price”, says the brokerage.
Magazine Luiza has target price of BRL 8 and upside potential for 175% in up to 36 months.
Sum Group (SOMA3)
In the midst of an e-commerce still little penetrated in the clothing sector, the Sum group (SUM3) has been investing in its digital platforms, with digital sales channels currently accounting for around 44% of the company’s sales.
“The stock should capture growth on different fronts, with a history of execution, combined with its discounted valuation, represents a considerable investment opportunity”, indicate analysts.
The Soma Group has target price of BRL 18.30 and upside potential for 94% in up to 36 months.
Although there are concerns in the coming quarters with its margins and the occupancy rate of its vehicles, the moved (MOVI3) has become much more relevant for the sector, while maintaining a 3x leverage in the last 12 months.
The company considerably increased its bargaining power with automakers, an opportunity in which the car rental company should not register more negative margins.
Movida has target price of BRL 29 and upside potential for 137% in up to 36 months.
THE Totvs (TOTS3), as well as other technology companies both in Brazil and abroad, suffered a lot due to the cycle of high interest rates.
However, Totvs is a company with excellent business and management quality, being a leader and holding more than 40% of market share.
“Totvs’ shares are at attractive levels for the investor who contemplates the horizon of two or three years of investment”, say analysts.
Totvs has target price of BRL 36.10 and upside potential for 55% in up to 36 months.
Vibra Energy (VBBR3)
The financial situation of vibrate energy (VBBR3) greatly improved as it moved from a debt level of 2.5x at its historic mark to just 1.6x.
This allowed the fuel trader to spend R$ 200 million of its cash to continue with its buyback program, despite the current situation in the markets.
At a better time, shares held in treasury can be canceled, generating shareholder value.
Vibra Energia has target price of BRL 33 and upside potential for 96% in up to 36 months.
The history of MRV (MRVE3) is quite positive, since, in the last decade, despite the major crisis that affected the real estate development segment, causing the bankruptcy of large companies in the sector in Brazil, MRV managed to go through the period unscathed.
According to analysts, MRV should offer good earnings opportunities for shareholders within a two to three year window.
MRV has target price of BRL 12.90 and upside potential 43% in up to 36 months.
The educational sector has good prospects, according to Ativa Investimentos.
the action of yduqs (YDUQ3) is best suited to capture all growth fronts in the sector, in which 55% of its revenue comes from the premium and distance learning segments, and its medical centers are still maturing.
Yduqs has target price of BRL 28 and upside potential for 98% in up to 36 months.
With the actions of Ambipar (AMBP3) pressured by seeking growth at a time when access to capital is more expensive, the company is traded at 6.3 times its Firm Value over Ebitda.
Meanwhile, its closest international competitors are trading in double digits, evidencing the share’s discount.
Ambipar has target price of 51 and upside potential for 123% in up to 36 months.
THE hapvida (HAPV3) has suffered from the increase in claims as a result of the rise in medical inflation, supplies and labor have increased considerably.
On the other hand, the consolidation of the healthcare sector and the companies’ expertise in readjusting their tickets above inflation should guarantee Hapvida gains in the coming years in its vertical model, with a gradual increase in demand.
Hapvida has target price of BRL 10.10 and upside potential 65% in up to 36 months.
D’Or Network (RDOR3)
In the last 12 months, the D’Or Network (RDOR3) had a considerable devaluation, as a result of the increase in the cost of capital and inflation, which put pressure on its margins.
However, in the long term, the company will pass on the increase in costs and expenses, improving its margins, as it has historically always done.
Rede D’Or has target price of BRL 52.10 and upside potential for 89% in up to 36 months.
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